German insurers ‘better off’ with Solvency II static transitional
Static transitional will smooth impact of unrealised gains on profit shares
Solvency II's ‘static' transitional is likely to be the most advantageous for German life insurers as they move to the new risk-based capital regime, analysis by actuaries suggests.
German insurers had expected to use the so-called dynamic transitional, which was designed to ease the transition to Solvency II for existing long-term business with guarantees in a prolonged low-interest environment.
Analysis by consultancy Towers Watson suggests the static method would be more beneficial to German
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